Unit 1 - Module 2

Question 1

corporate social responsibility (CSR)

Answer 1

Philosophy in which a company voluntarily engages in actions that benefit society, be it economically, socially, politically, or environmentally.

Question 2

Stakeholders

Answer 2

Those who have a stake in the performance and output of an organization, such as employees, unions, investors, suppliers, consumers, local and national governments and communities.

Question 3

World Trade Organization (WTO)

Answer 3

International organization tasked with promoting global trade, enforcing common trade regulations, and helping promote ethical behavior among members.

Question 4

code of ethics

Answer 4

Guide that publicly sets out and organization’s key values and ethical obligations

Question 5

greenwashing

Answer 5

When organizations carry about CSR missions in an inauthentic way, using them to increase publicity rather than to spur real change.

Question 6

internal transparency

Answer 6

Degree to which an organization operates with openness, communication, and accountability.

Question 7

Sarbanes-Oxley Act (SOX)

Answer 7

Law aimed at improving corporate transparency by requiring clear reporting practices.

Question 8

whistleblowers

Answer 8

Those who tell the public or the authorities about alleged misconduct occurring in a government department, private company or organization.

Question 9

ethics

Answer 9

principles that serve as a compass about how to behave

Question 10

legal

Answer 10

an act that is allowed or is in conformity with the law of the land

Question 11

legal-ethical

Answer 11

when the law and personal or organizational ethics are in accordance with each other

Question 12

legal-unethical

Answer 12

the dilemma in which established laws are not in accordance or do not uphold the ethical choice

Question 13

illegal-ethical

Answer 13

dilemma in which the ethical choice would be in violation of established laws

Question 14

Pentagon Papers Case

Answer 14

Illegal-ethical conflict in which U.S. government officials leaked top secret papers to inform the public about government actions during the Vietnam War.

Question 15

personal ethics

Answer 15

codes, principles, and values that shape people’s interactions with others.

Question 16

values

Answer 16

stable life goals that people have that reflect what is most important to them

Question 17

morals

Answer 17

rules people develop as a result of cultural norms and values and are traditionally passed down through generations and characterize a cultural group

Question 18

Organizational ethics

Answer 18

Rules, principles, and standards for deciding what is morally right or wrong when doing business.

Question 19

WGU Code of Student Conduct

Answer 19

The organizational code of ethics that governs responsible and respectful behavior at WGU.

Question 20

Who is responsible for setting the ethical tone of a corporation?

Answer 20

Managers- Integrity and ethics starts at the top with organizations’ leadership and trickles down to everyone else.

Question 21

A company is working hard to establish objectives that promote ethics and standards.

What terms describe how these objectives are defined?

Answer 21

Specific and measurable - Specific outcomes define a desired outcome, and measurable outcomes define a method for determining whether an objective has been met. Promoting ethics and standards requires specifically defining which ethics and standards have been established and should be measurable based on outcomes.

Question 22

A judge believes that the use of cannabis should never be allowed regardless of the situation due to personal principles of what is right and wrong. A law was recently passed, however, allowing individuals to use cannabis.

Which type of issue does the judge face?

Answer 22

Legal-unethical - The judge’s personal ethics are that cannabis use is unethical even though it is legal.

Question 23

A job candidate asks questions during an interview to determine whether their personal life goals align with those of the organization.

Which factor is the candidate using to guide the decision?

Answer 23

Values - Values are personal ideas about what is important and are consistent and relevant to establishing goals.

Question 24

Cultural norms

Answer 24

Cultural norms are culturally acceptable behaviors.

Question 25

A company insists on treating suppliers with respect and refuses to push them to the lowest pricing possible. Which level of organizational ethics is being used by this company?

Answer 25

Stakeholder's issues - Stakeholders include anyone affected by the organization, including suppliers.

Question 26

A retail company frequently updates its principles, rules, and guidelines to reflect input by employees. Which level of organizational ethics is being illustrated by this company?

Answer 26

Internal policy issues - Internal policies are between the organization and its internal stakeholders, the employees. The regular policy updates will include employee input and reflect internal policy issues.

Question 27

Personal issues

Answer 27

Personal issues are how employees treat each other in an organization.

Question 28

Stakeholder issues

Answer 28

A stakeholder is anyone affected by the success or failure of a company.

Question 29

Societal issues

Answer 29

Societal issues consider the world as a whole, and they concern all of society.

Question 30

A company has embraced the philosophy of CSR. Which practice reflects this commitment?

Answer 30

Holding a food drive to support local residents in need - CSR refers to voluntary actions taken by a company that benefit the community at large. A food drive is both voluntary and works to benefit the local community.

Question 31

What is the strategic value of implementing CSR?

Answer 31

To increase profits and trust in the long-term while promoting positive community relations - CSR is designed to increase long-term profits and shareholder trust while promoting positive community relations and maintaining high ethical standards.

Question 32

A company develops a program to help guide employees in decision-making and defines expectations for accepting gift from clients. What is the name of the program?

Answer 32

Compliance and ethics - Many organizations implement compliance and ethics programs to help guide decision-making and employee behavior.

Question 33

Whistleblower and protection

Answer 33

Whistleblowing occurs when an employee notifies an official of alleged misconduct to the public or to authorities.

Question 34

Social responsibility

Answer 34

CSR is a philosophy in which a company voluntarily engages in actions that benefit society at large.

Question 35

Internal transparency

Answer 35

Internal transparency means conducting business in an honest and open manner. It is one of the keys to defeating transparency.

Question 36

A large manufacturer of ice cream products has a core value of "making the world a better place." However, it was discovered that the manufacturer sourced their main raw ingredient from a company that used practices considered detrimental to the well-being of animals. Which situation is occurring with this discrepancy?

Answer 36

Greenwashing- Greenwashing is when a company's ethical commitments and statements run contrary to their actual practices. Sourcing ingredients from suppliers who have practices detrimental to the well-being of animals is clearly contrary to the manufacturer's commitment to "making the world a better place."

Question 37

Publicizing

Answer 37

Publicizing is when individuals or organizations forcefully communicate their actions to the public. Often organizations will publicize their CSR actions.

Question 38

Kickbacking

Answer 38

Kickbacks are illegal material gratification or compensation that an individual or organization receives for products or services.

Question 39

Whistleblowing

Answer 39

Whistleblowing is when an individual discovers and informs the public or the authorities about alleged misconduct in an organization.

Question 40

The top management of a publicly traded company has been cited for violation of the transparency standards with respect to their financial and accounting reporting practices. Which law has this company violated?

Answer 40

Sarbanes-Oxley Act (SOX) - SOX mandates publicly traded companies to follow reporting transparency in financial and accounting reporting. The law also makes the top management of the company personally responsible for errors in financial reporting.

Question 41

Governmental Accounting Standards (GAS) Act

Answer 41

The GAS board provides guidelines and standards to organizations for financial reporting. This is not a mandated law.

Question 42

Corporate Social Responsibility (CSR) Act

Answer 42

CSR is related to ethical actions by corporations towards environmental and social causes. At present, it is voluntary in the USA and has no relation to financial and accounting practices of a publicly traded company.

Question 43

Generally Accepted Accounting Principles (GAAP) Act

Answer 43

GAAP is an accounting reporting standard, but it is not mandated as a law.

Question 44

A group of employees discovered alleged misconduct by senior managers of their company and leaked information about the situation to the press and general public. What is term for this group of employees?

Answer 44

Whistleblowers - A whistleblower is someone like an employee or group of employees who informs the public about alleged misconduct occurring in an organization.

Question 45

Public auditors

Answer 45

Public auditors are external auditing agencies that audit the financial accounting of companies to make sure that the proper standards and laws are being followed.

Question 46

Greenwashers

Answer 46

Greenwashing is used to describe the situation in which ethical commitments and statements run contrary to actual practices of an organization.

Question 47

The top management of a company implemented a policy in which all employees can attend the board meetings so they can be present when important decisions are made. Which practice is being followed by this company?

Answer 47

Internal transparency - Internal transparency is the ability of all individuals in an organization to operate in an environment of openness, communication, and accountability.

Question 48

Internal auditing

Answer 48

Internal auditing is an organizational function responsible for verifying and assuring financial reporting accuracy.

Question 49

Standards

Answer 49

define how an individual's behavior is measured. In an organization, policies identify organizational standards for employees.